Getting hit by a negligent driver is stressful enough. Finding out afterward that their insurance policy isn’t nearly enough to cover your injuries adds a whole new layer of frustration, especially when medical bills and missed paycheques are already piling up. It’s a more common problem than most people realize, and it does not mean you are out of options.
When the at-fault driver’s coverage runs out before your losses are covered, Alberta law allows you to turn to your own policy through an underinsured motorist (UIM) claim. At MNH Injury Lawyers, we help injured drivers understand exactly how that process works and fight to make sure they recover everything they are entitled to, not just whatever is left on someone else’s policy.
Here is what you need to know about pursuing a UIM claim after a car accident in Alberta.
How Does a UIM Claim Actually Work?
A UIM claim is not a standalone process — it happens in sequence, after the at-fault driver’s own coverage has been exhausted. Here’s how it typically unfolds:
- You file with the at-fault driver’s insurer first. Your lawyer pursues the maximum available under their policy limits, the same way any car accident claim starts. Our guide on how to get paid after a car accident walks through that first stage in more detail.
- If their policy limit falls short, you turn to your own coverage. Most Alberta auto policies include underinsured motorist protection, part of the broader Alberta Standard Automobile Policy that every driver in the province carries.
- Your own insurer steps in for the gap. This is a different situation from dealing with an uninsured driver entirely, though the two are often confused. Our page on uninsured drivers and the Alberta MVAC program explains that related but distinct process.
Types of Car Accidents That Often Involve Underinsured Drivers
UIM claims can arise from any type of collision, but a few patterns show up again and again:
- Rear-end collisions – usually caused by a distracted driver who fails to stop in time, often while texting or otherwise not watching the road
- T-bone or side-impact collisions – common at intersections when a driver runs a red light or fails to yield; these are particularly dangerous because vehicle sides offer far less structural protection than the front or rear
- Head-on collisions – frequently linked to impaired driving, drowsy driving, or a driver crossing the center line, and they carry the highest risk of severe or fatal injury. If alcohol was involved, our page on suing a drunk driver in Alberta covers how that affects your claim
- Sideswipe collisions – often the result of a driver drifting out of their lane or failing to check a blind spot; even when less severe on impact, these crashes can cause a driver to lose control and trigger a more serious secondary collision. We cover this in more depth on our sideswipe accident injuries page
Common Injuries When an Underinsured Driver Causes a Crash
The injuries in these accidents are no different from any other car crash — what changes is how much harder it becomes to get them properly compensated when the at-fault driver’s coverage is too thin. Common injuries include:
- Whiplash and neck injuries – especially common in rear-end collisions, causing pain, stiffness, and headaches that can last weeks or months. Insurers sometimes try to minimize these claims under Alberta’s minor injury cap, which our Minor Injury Regulation page explains in detail
- Back and spinal cord injuries – ranging from herniated discs to partial or complete paralysis in more severe cases, often requiring lifelong care
- Head and brain injuries – from concussions to more serious traumatic brain injuries that affect memory, cognition, and personality
- Broken bones and fractures – particularly in the arms, wrists, knees, ankles, and legs, often requiring surgery and extended physical therapy
- Internal injuries – organ damage or internal bleeding that is not always immediately apparent but can become life-threatening without prompt treatment
- Cuts and lacerations – from broken glass and debris, sometimes requiring stitches or surgery and leaving lasting scarring
Beyond the physical toll, many accident victims also experience anxiety, depression, or PTSD following a serious crash, which is a real and compensable part of a claim.
Steps to Filing an Underinsured Motorist Claim
Every UIM case moves through a fairly predictable sequence:
- Report the accident and get a copy of the police report — this creates an objective record of what happened
- Gather evidence — photos of the scene, your injuries, and any property damage
- Follow through on medical treatment — your medical records become central evidence in the claim
- Retain a lawyer — someone who can manage every stage of filing, negotiation, and litigation on your behalf
- File with the at-fault driver’s insurer first — your UIM claim cannot proceed until this step plays out
- Submit the UIM claim to your own insurer — including the police report, medical records, and documentation from the first claim
- Negotiate — your insurer will investigate and may make an offer, which your lawyer can push back on if it falls short
- Resolve or litigate — most claims settle, but if your insurer will not offer fair compensation, your lawyer can take the case to court
Settling vs. Litigating a UIM Claim
Deciding whether to accept a settlement or pursue litigation is one of the more consequential decisions in a UIM case, and it depends on your specific circumstances:
- Settlements are faster and less stressful, which matters if you need funds promptly, but they can sometimes mean accepting less than you might recover through litigation
- Litigation can result in a higher payout, but it takes longer, comes with legal costs, and carries the inherent uncertainty of any court process
Whether it’s worth pursuing litigation depends heavily on how far apart your insurer’s offer is from what your claim is actually worth. Our page on whether it’s worth it to sue after a car accident covers this decision in more detail.
What Compensation Can You Recover in a UIM Claim?
A successful UIM claim can cover many of the same damages as a standard car accident claim, including:
- Lost wages, both income already lost and any reduction in future earning capacity
- Pain and suffering, covering the physical and emotional toll of your injuries
- Loss of consortium, for the effect on your relationship with a spouse or partner
- Disability and disfigurement, for permanent effects on your quality of life
- Emotional distress, including anxiety, depression, and PTSD stemming from the accident
- Punitive damages, in rare cases involving especially reckless conduct by the at-fault driver
Talk to an Experienced Car Accident Lawyer at MNH Injury Lawyers
Dealing with your own insurance company after an accident can feel just as frustrating as dealing with the at-fault driver’s insurer, especially when you assumed your own policy would make things simpler. It rarely does without an advocate in your corner. At MNH Injury Lawyers, our car accident lawyers handle every stage of a UIM claim, from the first report to settlement negotiations or litigation, so you can focus on recovering. Learn more about our team on our about page.
If you were injured by an underinsured driver in Alberta, contact MNH Injury Lawyers today for a free consultation.
Frequently Asked Questions
What’s the difference between an uninsured motorist claim and an underinsured motorist claim?
An uninsured motorist (UM) claim applies when the at-fault driver has no insurance at all, or fled the scene. An underinsured motorist (UIM) claim applies when the at-fault driver has coverage, but it is not enough to cover your full damages. Both typically involve turning to your own policy once the at-fault driver’s coverage, if any, has been exhausted.
Do I have to file with the at-fault driver’s insurance company before I can make a UIM claim?
Yes. In almost all cases, your lawyer will first pursue the maximum available under the at-fault driver’s policy. Only once that amount proves insufficient to cover your damages does the UIM portion of your own policy come into play.
Will filing a UIM claim raise my insurance rates?
This is a common concern, but filing a UIM claim is different from filing a claim where you were at fault. Since you did not cause the accident, a UIM claim generally should not be treated the same way an at-fault claim would be when your insurer reviews your policy. It’s worth asking your lawyer to review your specific policy terms early in the process.
What if the at-fault driver’s insurance company denies fault entirely?
Your lawyer can still gather evidence, including police reports, witness statements, and photos, to establish that the other driver was responsible before determining whether their coverage is sufficient. If liability is disputed, that needs to be resolved before the underinsured portion of your claim can move forward.
How long do I have to file a UIM claim in Alberta?
UIM claims generally follow the same two-year limitation period that applies to most personal injury claims in Alberta, though your specific policy may include its own notice requirements with shorter deadlines. Because of that, it’s best to involve a lawyer as early as possible after the accident to make sure no deadline is missed.
